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Formula sheet
Every formula in Trial Balance and Financial Statements, in one place. Print it and keep it beside you while you practise.
5.1 The Trial Balance
Missing capital
Capital = Total debit balances − Total of all other credit balances
5.2 Statement of Financial Performance
Net sales revenue
Net sales revenue = Sales revenue − Sales returns
Gross profit
Gross profit = Net sales revenue − Cost of sales
Profit for the period
Profit/(Loss) for the period = Gross profit + Other income − Expenses
Profit for the period (service business)
Profit/(Loss) for the period = Service fee revenue + Other income − Expenses
Chapter Summary
Profit/(Loss)
Profit/(Loss) = Income − Expenses
Ending Capital
Ending Capital = Beginning Capital + Additional Capital (if any) +/− Net profit (loss) − Drawings (if any)